Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Brenda has a comparative advantage in the production of X.
B) Brenda has an absolute advantage in the production of X and Y.
C) Agnes has a comparative advantage in the production of Y.
D) Brenda cannot gain from trade.

Question

Quizplus · Accepted Answer

Brenda can produce more units of both X and Y per hour than Agnes, giving her an absolute advantage in both.

Agnes Can Produce Either 1 Unit of X or 1